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According to a new market report published by Credence Research “Global Drill Bits Market– Growth, Future Prospects, Competitive Analysis, and Forecast 2016 – 2023,” the global drill bits market for oil & gas industry is expected to reach US$ 8.2 Bn by 2023, expanding at a CAGR of 6.1% over the forecast period 2016 to 2023.

Growing energy demand due to increase in number of automobiles due to rapid urbanization especially in emerging economies of Asia Pacific such as India and China are expected to drive the demand for fossil fuel which is influencing which oil producer to increase oil production, this in turn is expected to spur the growth of global drill bits market for oil & gas industry. Increase in exploration and production of sand formation coupled with new drilling techniques such as hydraulic fracturing or fracking is anticipated to impel the demand for polycrystalline diamond bits (PCD). Oil & gas industry has witnessed a shift in exploration and production operations form conventional to non-conventional oil & gas exploration. Growing production of shale gas since 2010 coupled with increasing ultra-deepwater drilling activities in U.S. Gulf of Mexico is expected to drive the demand for drill bits market over the forecast period (2016-2023). Moreover, increasing rig count for offshore drilling also anticipated to fuel the demand for drill bits over the forecast period. However, decline in oil prices in recent past has adversely affected the profit margin of oil producers. Thus, oil producers are concentrating on improving oil production with the use of technologies. Leading drill bits manufacturers are providing drill bits endowed with technology that offers better rate of penetration at low cost, making drilling operations more efficient. Moreover, increasing offshore drilling activities coupled with increasing production of shale gas is expected to augment the growth of drill bits market over the forecast period 2016-2023.

Competitive Insights:

Global drill bits market is segmented type into roller cone bits and fixed cutter bits on the basis of product. Roller cone bits segment is further sub-segmented as milled-tooth bits and tungsten carbide inserts (insert bits). Among roller cone bit segment, the tungsten carbide inserts segment is anticipated to be the largest segment due to low cost and adaptability for the soft formations. The segment is expected to continue its dominance over the forecast period.

Fixed cutter bit segment is further sub-segmented into natural diamond bits and Polycrystalline diamond bits (PDC). In 2013, Polycrystalline diamond bits (PDC) was the most dominant segment and expected to continue its dominance till 2023. The segment is expected to register significant growth over the forecast period due to growing ultra-deep water drilling activities in U.S. Gulf of Mexico and other parts of the globe.